BV Financial, Inc. Announces Financial Results

Rhea-AI Summary

BV Financial (NASDAQ:BVFL) reported Q2 2025 financial results with net income of $2.9 million ($0.29 per diluted share), down from $3.4 million ($0.32 per diluted share) in Q2 2024. Key highlights include:

The bank's total assets reached $908.3 million, with net loans increasing by $13.2 million to $742.4 million. Deposits grew by $7.4 million to $658.9 million. The company maintained strong asset quality with non-performing loans at $4.4 million and an allowance for credit losses ratio of 1.22%.

Notable developments include the complete repayment of $15.0 million FHLB borrowings, a stock repurchase of 277,000 shares at an average price of $15.29, and improved net interest margin of 4.36% compared to 4.33% year-over-year.

Positive

• Net loans increased $13.2 million (1.8%) to $742.4 million
• Deposits grew by $7.4 million (1.1%) to $658.9 million
• Net interest margin improved to 4.36% from 4.33% year-over-year
• Complete repayment of $15.0 million FHLB borrowings strengthening balance sheet
• Strong asset quality with 208.6% coverage ratio of non-performing loans

Negative

• Net income decreased to $2.9 million from $3.4 million year-over-year
• Non-accrual loans increased by $400,000 to $4.4 million
• Noninterest expenses increased by $900,000 to $5.8 million
• Return on average equity declined to 5.78% from 6.68% year-over-year
• Total assets decreased by $3.5 million (-0.4%) to $908.3 million

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BALTIMORE, MD / ACCESS Newswire / July 17, 2025 / BV Financial, Inc. (NASDAQ:BVFL), the holding company for BayVanguard Bank (the "Bank"), today reported net income of $2.9 million, or $0.29 per diluted share, for the quarter ended June 30, 2025 compared to net income of $3.4 million, or $0.32 per diluted share, for the quarter ended June 30, 2024. Net income for the six-month period ended June 30, 2025 was $5.0 million or $0.50 per diluted share compared to net income of $6.0 million or $0.52 per diluted share for the six-month period ended June 30, 2024.

Adjusted net income, a non-GAAP financial metric, was $3.7 million and $3.4 million for the quarters ended June 30, 2025 and 2024 and $6.7 million and $6.04 million for the year to date periods ended June 30, 2025 and 2024, respectively. For a reconciliation of net income as reported and Non-GAAP adjusted net income, see the table below.

Financial Highlights

• Return on average assets and return on average equity for the three months ended June 30, 2025 was 1.26% and 5.78%, respectively.

• Net loans increased $13.2 million or 1.8% to $742.4 million compared to $729.2 million at December 31, 2024.

• Deposits increased $7.4 million or 1.1% from $651.5 million at December 31, 2024 to $658.9 million at June 30, 2025.

• All $15.0 million in borrowings from the Federal Home Loan Bank of Atlanta "FHLB" were paid off in the quarter.

• Non-accrual loans increased $400,000 to $4.4 million at June 30, 2025 from $4.0 million at December 31, 2024.

• The Company recorded provisions for credit losses of $178,000 for the three months ended June 30, 2025 and $475,000 for the six months ended June 30, 2025.

• During the quarter ended June 30, 2025, the Company repurchased 277,000 shares of its outstanding common stock at an average price of $15.29.

FINANCIAL CONDITION DISCUSSION

Total Assets. Total assets were $908.3 million at June 30, 2025, a decrease of $3.5 million, or -0.4%, from $911.8 million at December 31, 2024. The decrease was due primarily to the Company utilizing cash on-hand to repay $15.0 million in borrowings from the FHLB.

Cash and Cash Equivalents. Cash and cash equivalents decreased $14.2 million, or 20.1%, to $56.3 million at June 30, 2025 from $70.5 million at December 31, 2024. The decrease in cash is primarily a result of the pay-off of FHLB borrowings.

Loans Receivable. Loans receivable increased $13.8 million, or 1.9%, to $751.6 million at June 30, 2025 from $737.8 million at December 31, 2024. Increases in in owner occupied 1-4 loans, commercial loans and construction loans offset decreases in non-owner occupied 1-4 loans, owner occupied 1-4 junior liens, owner occupied commercial real estate, marine and investor commercial real estate loans.

Securities. Securities available for sale decreased by $1.9 million or 5.1% from December 31, 2024 as paydowns in the mortgage-backed securities were not replaced with new purchases. The held-to-maturity portfolio experienced a slight decrease due to paydowns.

Total Liabilities. Total liabilities decreased $6.0 million or -0.8%, to $710.3 million at June 30, 2025 from $716.3 million at December 31, 2024. The decrease was due primarily to the decrease in borrowings offsetting increases in deposits.

Deposits. Total deposits increased $7.4 million, or 1.1% to $658.9 million at June 30, 2025 from $651.5 million at December 31, 2024. Interest-bearing deposits increased $2.6 million, or 0.5%, to $524.4 million at June 30, 2025 from $521.8 million at December 31, 2024. Noninterest bearing deposits increased $4.8 million, or 3.7%, to $134.5 million at June 30, 2025 from $129.7 million at December 31, 2024.

Stockholders' Equity. Stockholders' equity increased $2.5 million, or 1.3%, to $198.0 million at June 30, 2025 from $195.5 million at December 31, 2024 as net income and the decrease in the accumulative other comprehensive loss was somewhat offset by $4.3 million in stock repurchase during the period.

RESULTS OF OPERATION DISCUSSION

Net Income. Net income was $2.9 million or $0.29 per diluted share for the three months ended June 30, 2025 compared to $3.4 million or $0.32 per diluted share for the three months ended June 30, 2024. Net income was $5.0 million or $0.50 per diluted share for the six months ended June 30, 2025 compared to $6.0 million or $0.52 per diluted share for the six months ended June 30, 2024. The decreases were due to higher provisions for credit losses and noninterest compensation expenses, offset by higher net interest income.

Net Interest Income. Net interest income was $9.2 million for the three months ended June 30, 2025 compared to $8.9 million for the three months ended June 30, 2024.The net interest margin for the three months ended June 30, 2025 was 4.36% compared to 4.33% for the three months ended June 30, 2024. The increase in net interest income was due to higher average balances of interest earning assets and higher yields on these assets offset by a higher average balance of deposits and higher rates paid on deposits.

Net interest income was $17.8 million for the six months ended June 30, 2025, compared to $16.9 million in the six months ended June 30, 2024. The net interest margin for the six months ended June 30, 2025 was 4.24% compared to 4.12% for the six months ended June 30, 2024. The increase in net interest income was due to higher average balances of interest earning assets and higher yields on these assets offsetting the increase in interest expense due to a higher volume of deposits and higher rates paid on deposits.

Noninterest Income. For the three months ended June 30, 2025, noninterest income totaled approximately $714,000 compared to $596,000 for the quarter ended June 30, 2024. The increase is attributable to the collection of miscellaneous fees on loans and deposits.

For the six months ended June 30, 2025 and June 30; 2024, noninterest income totaled $1.2 million.

Noninterest Expense. For the three months ended June 30, 2025, noninterest expense totaled $5.8 million compared to $4.9 million in the three months ended June 30, 2024. Increases in compensation and benefits of $927,000 due to the $1.1 million cost of the equity awards granted under the 2024 Equity Incentive Plan approved by stockholders. All other expense categories combined decreased by $70,000 in the quarter ended June 30, 2025 when compared to the quarter ended June 30, 2024.

For the six months ended June 30, 2025, noninterest expense totaled $11.9 million as compared to $9.8 million in the six months ended June 30, 2024. Compensation and benefits expense increased $2.3 million due to the $2.3 million cost of the equity awards granted under the 2024 Equity Incentive Plan approved by stockholders. All other expense categories combined decreased by $210,000 in the six-month period ended June 30, 2025 when compared to the six month period ended June 30, 2024.

Asset Quality. Non-performing assets at June 30, 2025 totaled $4.5 million consisting of $4.4 million in nonperforming loans and $157,000 in other real estate owned, compared to $4.2 million at December 31, 2024, consisting of $4.0 million in non-performing loans and $159,000 in other real estate owned. At June 30, 2025, the allowance for credit losses on loans was $9.2 million, which represented 1.22% of total loans and 208.6% of non-performing loans compared to $8.5 million at December 31, 2024, which represented 1.15% of total loans and 212.5% of non-performing loans.

Forward-Looking Statements

This press release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative and regulatory issues that may impact the Company's earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, increased competitive pressures, the effects of inflation, the imposition of tariffs or other domestic or international governmental policies, potential recessionary conditions, general economic conditions or conditions within the securities markets, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the FRB, changes in the quality, size and composition of our loan and securities portfolios, changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio, changes in demand for our products and services, accounting and tax changes, deposit flows, real estate values and competition, changes in accounting principles, policies or guidelines, changes in legislation or regulation and other economic, competitive, governmental, regulatory and technological factors affecting the Company's operations, pricing, products and services, a potential government shutdown, a failure in or breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company's financial condition and results of operations and the business in which the Company and the Bank are engaged and the failure to maintain current technologies, our ability to enter into new markets successfully and capitalize on growth opportunities and the failure to retain or attract employees.

BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Baltimore, Maryland with thirteen branches in the Baltimore metropolitan area and the eastern shore of Maryland. The Bank is a full-service community-oriented financial institution dedicated to serving the financial service needs of consumers and businesses.

BV FINANCIAL, INC.
Consolidated Financial Ratios

		At or For the Three Months								At or For the Six Months
		Ended June 30,								Ended June 30,
		2025				2024				2025				2024
Performance Ratios(1):
Return on average assets			1.26	%			1.52	%			1.09	%			1.34	%
Return on average equity			5.78	%			6.68	%			5.03	%			5.92	%
Interest rate spread(2)			3.60	%			3.61	%			3.48	%			3.10	%
Net interest margin(3)			4.36	%			4.33	%			4.24	%			4.12	%
Non-interest expense to average assets			2.54	%			2.19	%			2.62	%			2.21	%
Efficiency ratio(4)			58.30	%			51.53	%			62.66	%			54.42	%
Average interest-earning assets to average interest-bearing liabilities			151.25	%			154.65	%			149.86	%			154.62	%
Average equity to average assets			21.88	%			22.73	%			21.62	%			22.68	%
Credit Quality Ratios:
Allowance for credit losses as a percentage of total loans			1.22	%			1.22	%			1.22	%			1.22	%
Allowance for credit losses as a percentage of non-performing loans			208.61	%			103.88	%			208.61	%			103.88	%
Net charge-offs (recoveries) to average outstanding loans during the year			0.00	%			-0.01	%			-0.01	%			-0.02	%
Non-performing loans as a percentage of total loans			0.58	%			1.17	%			0.58	%			1.17	%
Non-performing loans as a percentage of total assets			0.48	%			0.92	%			0.48	%			0.92	%
Total non-performing assets as a percentage of total assets			0.50	%			0.94	%			0.50	%			0.94	%
Other:
Number of offices			13				13				13				13
Number of full-time equivalent employees			109				116				109				116
Weighted average shares outstanding			9,858,540				10,652,315				9,878,319				11,391,350

(1) Performance ratios are annualized.
(2) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(3) Represents net interest income as a percentage of average interest-earning assets.
(4) Represents non-interest expenses divided by the sum of net interest income and non-interest income.

BV FINANCIAL, INC.
Consolidated Balance Sheets

		June 30, 2025				December 31, 2024
(dollars in thousands, except share amounts)		(unaudited)
Assets
Cash		$	4,987			$	5,842
Interest-bearing deposits in other banks			51,336				64,658
Cash and cash equivalents			56,323				70,500
Equity Investment			406				391
Securities available for sale			35,359				37,259
Securities held to maturity (fair value of $5,128 and $5,171, ACL of $3 and $4)			5,832				5,979
Loans held for maturity			751,573				737,760
Allowance for Credit Losses			(9,159	)			(8,522	)
Net Loans			742,414				729,238
Foreclosed real estate			157				159
Premises and equipment, net			13,182				13,224
Federal Home Loan Bank of Atlanta stock, at cost			656				1,366
Investment in life insurance			20,259				20,058
Accrued interest receivable			3,243				3,161
Goodwill			14,420				14,420
Intangible assets, net			741				831
Deferred tax assets, net			9,309				8,899
Other assets			6,026				6,336
Total assets		$	908,327			$	911,821
Liabilities and Stockholders' Equity
Liabilities
Noninterest-bearing deposits		$	134,520			$	129,724
Interest-bearing deposits			524,371				521,767
Total deposits			658,891				651,491
FHLB borrowings			-				15,000
Subordinated debentures			34,961				34,883
Other liabilities			16,484				14,948
Total liabilities			710,336				716,322
Stockholders' equity
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued or outstanding			-				-
Common stock, $0.01 par value; 45,000,000 shares authorized in 2025 and 2024; 10,318,418 shares issued and outstanding as of June 30, 2025; 10,645,284 shares issued and outstanding as of December 31, 2024			103				106
Paid-in capital			91,854				94,679
Unearned common stock held by employee stock ownership plan			(7,069	)			(7,160	)
Retained earnings			114,455				109,495
Accumulated other comprehensive loss			(1,352	)			(1,621	)
Total stockholders' equity			197,991				195,499
Total liabilities and stockholders' equity		$	908,327			$	911,821

Consolidated Statements of Income

(dollars in thousands, except per share amounts)		Three Months Ended June 30,								Six Months Ended June 30,
Interest Income		2025				2024				2025				2024
Loans, including fees		$	11,334			$	10,177			$	22,075			$	19,959
Investment securities available for sale			324				306				674				612
Investment securities held to maturity			46				91				93				183
Other interest income			562				1,043				1,305				1,867
Total interest income			12,266				11,617				24,147				22,621
Interest Expense
Interest on deposits			2,622				2,242				5,223				4,228
Interest on FHLB borrowings			23				-				-				-
Interest on Subordinated debentures			465				466				1,125				1,521
Total interest expense			3,110				2,708				6,348				5,749
Net interest income			9,156				8,909				17,799				16,872
Provision for (recovery of) credit losses			178				(111	)			475				(92	)
Net interest income after provision for (recovery of) credit losses			8,978				9,020				17,324				16,964
Noninterest Income
Service fees on deposits			112				97				216				200
Fees from debit cards			177				182				341				354
Income from investment in life insurance			114				112				201				199
Other income			311				205				485				421
Total noninterest income			714				596				1,243				1,174
Noninterest Expense
Compensation and related benefits			4,018				3,091				8,542				6,220
Occupancy			379				409				823				847
Data processing			395				374				792				751
Advertising			3				6				9				11
Professional fees			249				244				479				356
Equipment			94				103				185				205
Foreclosed real estate and repossessed assets holding costs			0				11				2				16
Amortization of intangible assets			45				45				90				90
FDIC insurance premiums			84				81				165				164
Other expense			488				533				845				1,160
Total noninterest expense			5,755				4,897				11,932				9,820
Net income before tax			3,937				4,719				6,635				8,318
Income tax expense			1,076				1,320				1,675				2,345
Net income		$	2,861			$	3,399			$	4,960			$	5,973
Basic earnings per share		$	0.29			$	0.32			$	0.50			$	0.52
Diluted earnings per share		$	0.29			$	0.32			$	0.50			$	0.52

BV FINANCIAL, INC.
Average Balance Sheet for the Quarters ended June 30,
'(Dollars in thousands)

		For the Three Months Ended June 30,
		2025												2024
(dollars in thousands)		Average Outstanding Balance				Interest				Average Yield/Rate				Average Outstanding Balance				Interest				Average Yield/Rate
		(Unaudited)
Interest-earning assets:
Loans		$	752,181			$	11,334				6.04	%		$	705,516			$	10,177				5.79	%
Securities available-for-sale			34,770				324				3.74	%			33,445				306				3.67	%
Securities held-to-maturity			6,624				46				2.79	%			10,777				91				3.39	%
Cash, cash equivalents and other interest-earning assets			49,450				562				4.60	%			75,031				1,043				5.59	%
Total interest-earning assets			843,025				12,266				5.84	%			824,769				11,617				5.65	%
Noninterest-earning assets			64,324												67,088
Total assets		$	907,349											$	891,857
Interest-bearing liabilities:
Interest-bearing demand deposits		$	76,698				159				0.83	%		$	86,892				237				1.09	%
Savings deposits			120,584				106				0.35	%			139,980				96				0.28	%
Money market deposits			125,686				766				2.44	%			93,787				475				2.03	%
Certificates of deposit			197,488				1,591				3.23	%			177,859				1,434				3.23	%
Total interest-bearing deposits			520,456				2,622				2.02	%			498,518				2,242				1.80	%
Federal Home Loan Bank advances			1,978				23				4.66	%			-				-				-
Subordinated debentures			34,945				465				5.34	%			34,789				466				5.36	%
Total borrowings			36,923				488				5.30	%			34,789				466				5.37	%
Total interest-bearing liabilities			557,379				3,110				2.24	%			533,307				2,708				2.04	%
Noninterest-bearing demand deposits			134,841												139,070
Other noninterest-bearing liabilities			16,930												16,627
Total liabilities			709,150												689,004
Equity			198,199												202,853
Total liabilities and equity		$	907,349											$	891,857
Net interest income						$	9,156											$	8,909
Net interest rate spread											3.60	%											3.61	%
Net interest-earning assets		$	285,646											$	291,462
Net interest margin											4.36	%											4.33	%
Average interest-earning assets to interest-bearing liabilities			151.25	%											154.65	%

BV FINANCIAL, INC.
Average Balance Sheet for the Six Months ended June 30,
'(Dollars in thousands)

		For the Six Months Ended June 30,
		2025												2024
(dollars in thousands)		Average Outstanding Balance				Interest				Average Yield/Rate				Average Outstanding Balance				Interest				Average Yield/Rate
		(Unaudited)
Interest-earning assets:
Loans		$	745,958			$	22,075				5.97	%		$	706,942			$	19,959				5.54	%
Securities available-for-sale			35,821				674				3.79	%			33,745				612				3.61	%
Securities held-to-maturity			6,971				93				2.69	%			10,796				183				3.41	%
Cash, cash equivalents and other interest-earning assets			58,091				1,305				4.55	%			68,856				1,867				5.28	%
Total interest-earning assets			846,841				24,147				5.75	%			820,339				22,621				5.41	%
Noninterest-earning assets			64,667												67,273
Total assets		$	911,508											$	887,612
Interest-bearing liabilities:
Interest-bearing demand deposits		$	78,414				330				0.85	%		$	85,721				473				1.12	%
Savings deposits			121,516				206				0.34	%			143,304				161				0.18	%
Money market deposits			125,326				1,530				2.46	%			90,762				827				1.61	%
Certificates of deposit			196,439				3,157				3.24	%			175,477				2,767				3.09	%
Total interest-bearing deposits			521,695				5,223				2.02	%			495,264				4,228				1.62	%
Federal Home Loan Bank advances			8,453				194				4.63	%			-				-				-
Subordinated debentures			34,925				931				5.38	%			35,297				1,521				8.64	%
Total borrowings			43,378				1,125				5.23	%			35,297				1,521				8.64	%
Total interest-bearing liabilities			565,073				6,348				2.27	%			530,561				5,749				2.31	%
Noninterest-bearing demand deposits			133,419												139,381
Other noninterest-bearing liabilities			15,939												16,384
Total liabilities			714,433												686,326
Equity			197,075												201,286
Total liabilities and equity		$	911,508											$	887,612
Net interest income						$	17,799											$	16,872
Net interest rate spread											3.48	%											3.10	%
Net interest-earning assets		$	281,768											$	289,778
Net interest margin											4.24	%											4.12	%
Average interest-earning assets to interest-bearing liabilities			149.86	%											154.62	%

ALLOWANCE FOR CREDIT LOSS - LOANS
'(Dollars in thousands)

		QTR				YTD
		6/30/2025				6/30/2025
Beginning Balance		$	8,888			$	8,522
Provision for credit loss -loans			242				593
Net Charge-offs (recoveries):
Owner Occupied 1-4			(13	)			(16	)
Non-Owner Occupied 1-4			(14	)			(30	)
Investor Commercial Real Estate			-				-
OO Commercial Real Estate			-				-
Construction & Land			(1	)			(2	)
Farm Loans			-				-
Marine & Consumer			(1	)			4
Guaranteed by the US Gov't			-				-
Commercial			-				-
Net charge-offs (recoveries)			(29	)			(44	)
Ending Balance- ACL for Loans		$	9,159			$	9,159
Balance Reserve for unfunded loan commitments			237				237
Balance Reserve for HTM Securities			3				3
Total ACL		$	9,399			$	9,399
Provision expense for Unfunded Commitments			(63	)			(117	)
Provision expense for HTM Securities			(1	)			(1	)
Total other provision expense		$	(64	)		$	(118	)
Total provision for (recovery of ) credit losses		$	178			$	475

RECONCILIATION TABLE (UNAUDITED)
NON-GAAP ADJUSTED NET INCOME

Non-GAAP Reconciliation

In addition to results presented in accordance with generally accepted accounting principles utilized in the Unites States ("GAAP"), this earnings release contains a non-GAAP financial measure, Non-GAAP adjusted net income. The Company believes this non-GAAP financial measure is useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time. Non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

		Three Months ended June 30,
		2025				2024
Net Income (GAAP)		$	2,861			$	3,399
Plus(minus) tax adjusted items:
2024 Equity Plan Expenses - tax adjusted			839				-
Non GAAP adjusted net income		$	3,700			$	3,399

		Six Months ended June 30,
		2025				2024
Net Income (GAAP)		$	4,960			$	5,973
Plus(minus) tax adjusted items:
2024 Equity Plan Expenses - tax adjusted			1,728				-
Non GAAP adjusted net income		$	6,688			$	5,973

Contact:

Michael J. Dee
Chief Financial Officer
(410) 477- 5000

SOURCE: BV Financial, Inc.

View the original press release on ACCESS Newswire

FAQ

What was BVFL's net income for Q2 2025?

BV Financial reported net income of $2.9 million ($0.29 per diluted share) for Q2 2025, compared to $3.4 million ($0.32 per diluted share) in Q2 2024.

How did BVFL's loan portfolio perform in Q2 2025?

Net loans increased by $13.2 million (1.8%) to $742.4 million, with growth in owner-occupied 1-4 loans, commercial loans, and construction loans.

What is BVFL's deposit composition as of Q2 2025?

Total deposits were $658.9 million, consisting of $524.4 million in interest-bearing deposits and $134.5 million in noninterest-bearing deposits.

How did BVFL's asset quality metrics change in Q2 2025?

Non-performing assets totaled $4.5 million with an allowance for credit losses of $9.2 million, representing 1.22% of total loans and 208.6% coverage of non-performing loans.

What capital management actions did BVFL take in Q2 2025?

BVFL repurchased 277,000 shares at an average price of $15.29 and fully repaid $15.0 million in FHLB borrowings.